Server Market Size and Forecast, by Product (Rack, Blade, Tower, Micro, Open Compute Project); Enterprise Size; Channel; End user - Growth Trends, Key Players, Regional Analysis 2026-2035

  • Report ID: 6510
  • Published Date: Aug 14, 2025
  • Report Format: PDF, PPT

Server Market Outlook:

Server Market size was valued at USD 109.31 billion in 2025 and is likely to cross USD 251.74 billion by 2035, expanding at more than 8.7% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of server is assessed at USD 117.87 billion.

Key Server Market Insights Summary:

  • Regional Highlights:

    • North America’s 43.7% share in the server market dominates due to the existence of a sophisticated IT infrastructure, propelling demand through 2026–2035.
    • The Asia Pacific server market is experiencing stable growth through 2035, driven by the increasing industrial infrastructure development and the rise of the start-up culture in the corporate sector.
  • Segment Insights:

    • The IT & Telecom segment is projected to hold a 40.7% share of the Server Market by 2035, fueled by growing infrastructure development to meet rising data demands.
    • The Rack Segment is expected to achieve a 37.9% share by 2035, propelled by reduced space requirements and increased efficiency.
  • Key Growth Trends:

    • Prominent advancements in Rack PDU Power
    • Shift away from cloud to on premise as a part of sustainability efforts
  • Major Challenges:

    • Security concerns
    • Lack of supply chain
  • Key Players: Netflix, Ampere, Oracle Corporation, Quanta Computer inc., SMART Global Holdings, Inc., ASUSTeK Computer Inc., Cisco Systems, Inc., Huawei Technologies Co., Ltd., Intel Corporation.

Global Server Market Forecast and Regional Outlook:

  • Market Size & Growth Projections:

    • 2025 Market Size: USD 109.31 billion
    • 2026 Market Size: USD 117.87 billion
    • Projected Market Size: USD 251.74 billion by 2035
    • Growth Forecasts: 8.7% CAGR (2026-2035)
  • Key Regional Dynamics:

    • Largest Region: North America (43.7% Share by 2035)
    • Fastest Growing Region: Europe
    • Dominating Countries: United States, China, Japan, Germany, United Kingdom
    • Emerging Countries: China, India, Japan, South Korea, Singapore
  • Last updated on : 14 August, 2025

The server market is expanding due to the growing number of smartphone users, the growing number of data centers worldwide, and the rising investment in the construction of new data centers. For instance, spending on IT data centers is projected to reach USD 222 billion globally in 2023.

As companies digitize their operations, explore ways to maximize profits, and seek the longstanding resiliency of their business models, server infrastructure has reformed from cost to asset and generates tangible returns on its investments. With the depreciation of old servers and added cumulative maintenance costs, IT leaders have impelled procurement of public cloud alternatives. Historically, the exorbitant total cost of ownership (TCO) of on-premise servers has influenced IT decision-makers to decommission and rationalize server replacements. In 2023, direct digital transformation continued over 50% of overall ICT investments and this shift in the market dynamics is expected to proliferate the adoption of modern server infrastructure leading to revenue growth and operating profits for businesses, in turn, proliferation.

Server Market Size
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Server Market Size and Forecast:

Report Attribute Details

Base Year

2025

Forecast Period

2026-2035

CAGR

8.7%

Base Year Market Size (2025)

USD 109.31 billion

Forecast Year Market Size (2035)

USD 251.74 billion

Regional Scope

  • North America (U.S. and Canada)
  • Asia Pacific (Japan, China, India, Indonesia, South Korea, Malaysia, Australia, Rest of Asia Pacific)
  • Europe (UK, Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Latin America (Mexico, Argentina, Brazil, Rest of Latin America)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)

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Server Market Segmentation:

Product (Rack, Blade, Tower, Micro, Open Compute Project)

The rack segment in the server market is projected to gain about 37.9% share through 2035. Benefits from the rack server, like reduced space requirements and increased efficiency, are driving the segment's rise in a number of different industries. Rack servers are distinguished by their design, which calls for mounting in a rigid rack. Utilizing data from the organization's data center and computing environment at the organizational level, a rack server operates. This kind of server is incredibly dependable, scalable, and efficient. These servers make data center space more effectively utilized. Rack servers are similar to PCs, however they are wider in shape. They can be mounted using rails or screws.

Since it requires the least amount of money to install, it is regarded as the most cost-effective and efficient choice for this kind of server. Because of their design, rack servers are incredibly powerful, easy to install and maintain, and take up very little space. It is the perfect type for the demand of fewer servers because of its higher cooling capacity. For instance, in August 2023, with the AMD EPYC 4th Gen processor, HP unveiled the HPE ProLiant DL360 Gen11 server, designed to handle applications that require a high level of core density and performance. This server can support up to 96 cores per server.

End user (IT & Telecom, BFSI, Government & Defense, Healthcare, Energy, Others)

Based on the end user, the IT & telecom segment is likely to hold a 40.7% share of the global server market during the forecast period. The segment's growth is being accelerated by the IT and telecom industries' growing infrastructure development, which is a result of the world's population growing. In recent times, there has been a change in the IT and telecom sectors. Large databases created by the use of fixed-to-mobile broadband services and cloud-based services fuel the need for effective servers to maintain data.

The server market is also growing as a result of the deliberate development in the telecommunications sector and the growing numbers of mobile phone users. The market is expanding due to the top telecom providers' increasing development of mobile applications and multimedia capabilities, which increase demand for high-quality service.

Our in-depth analysis of the server market includes the following segments:

Product

  • Rack
  • Blade
  • Tower
  • Micro
  • Open Compute Project

Enterprise Size

  •  Micro
  • Small
  • Medium
  • Large

Channel

  • Direct
  • Reseller
  • Systems integrator
  • Others

End user

  • IT & Telecom
  • BFSI
  • Government & Defense
  • Healthcare
  • Energy
  • Others
Vishnu Nair
Vishnu Nair
Head - Global Business Development

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Server Market Regional Analysis:

North America Market Analysis

North America industry is likely to account for largest revenue share of 43.7% by 2035. The industry is expanding due to the existence of a sophisticated IT infrastructure, which is propelling the demand for servers. The market's demand is being driven by the increased presence of the major players in technology. The rising demand from regional countries' data centers for servers is driving the market growth. For instance, North America is in the lead with 62% of all data center investments made in 2023 and 69% of all data center investments made through April 2024.

As far as economies go, the U.S. leads the world. According to the United Nations Conference on Trade and Development's Digital Economy Report 2021, the nation is also home to 50% of the world's hyper-scale data centers. The Bureau of Economic Analysis also projects that in 2022, the actual value added to the digital economy will increase by 6.3%. This is anticipated to fuel the expansion of the U.S. server market during the forecast period, together with the existence of significant businesses like Microsoft, Hewlett Packard Enterprise Size Development LP, Dell Inc., and Amazon Web Services, Inc.

The integration of artificial intelligence, the Internet of Things (IoT), and sensors, together with Canada's growing inclination of big corporations towards cloud-based services rather than on-premise services, are propelling the server market's expansion throughout the country.

Asia Pacific Market Analysis 

Asia Pacific server market is expected to experience a stable CAGR during the forecast period. Due to the increasing industrial infrastructure development and the rise of the start-up culture in the corporate sector, which is propelling the growth of the server market, the region is anticipated to see the fastest growth in the demand for servers. The expansion of the market in the area is being driven by the escalating rivalry between the producers and retailers of servers and related technologies.

Japan is one of the top nations in the world for technical advancement and uptake, which has greatly aided in the expansion of the national market during the projection period. Among the significant projects is the collaboration between NVIDIA and Mitsui & Co., Ltd. to allow pharmaceutical businesses in Japan to utilize the Tokyo-1 NVIDIA DGX supercomputer.

The India server market has grown as a result of various factors, including increased digitalization, the development of the digital economy, and government initiatives to encourage the use of cloud computing. To drive the nation's digital future, for example, the Data Security Council of India and Google unveiled a new program in November 2022 called Secure with Cloud, which aims to empower the government and public sector to adopt and transform the cloud.

Server Market Share
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Key Server Market Players:

    Prominent industry companies are investing heavily in R&D to broaden their product offerings, which will support the further expansion of the server market. In addition, industry participants are taking a variety of strategic measures to expand their global reach. Notable changes in the market include new product launches, agreements, mergers and acquisitions, higher investment levels, and collaboration with other businesses. In order to thrive in a highly competitive and ever-changing market, the server business needs to offer products at fair prices.

    Here are some leading players in the server market:

    • Dell Inc.
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis 
    • Netflix
    • Ampere
    • Oracle Corporation
    • Quanta Computer inc.
    • SMART Global Holdings, Inc.
    • ASUSTeK Computer Inc.
    • Cisco Systems, Inc.
    • Huawei Technologies Co., Ltd.
    • Intel Corporation

Recent Developments

  • In May 2024, Ampere and Qualcomm collaborated to launch an arm-based AI server that powers data centers. Qualcomm's Cloud AI 100 Ultra AI inferencing processors and Ampere's CPUs for executing the models are the two firms' jointly announced AI-focused server launch collaboration.
  • In May 2024, Netflix revealed its plans to advertise technology platforms. This puts it up against other major players in the market that have ad servers, such as Google, Amazon, and Comcast. The announcement constitutes a substantial shift in the streaming behemoth's advertising strategy. To develop its ad technology, the firm first collaborated with Microsoft. This allowed Netflix to enter the ad market swiftly and overtake competitors like Hulu, which has had its own ad server for more than ten years.
  • In January 2023, NVIDIA introduced new AI-enabled server technologies in called the A100 Tensor Core GPUs, which offer improved performance for workloads related to AI and machine learning. The business is still at the forefront of data center AI hardware development.
  • Report ID: 6510
  • Published Date: Aug 14, 2025
  • Report Format: PDF, PPT
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Frequently Asked Questions (FAQ)

In the year 2026, the industry size of server is assessed at USD 117.87 billion.

Server Market size was valued at USD 109.31 billion in 2025 and is likely to cross USD 251.74 billion by 2035, expanding at more than 8.7% CAGR during the forecast period i.e., between 2026-2035.

North America’s 43.7% share in the server market dominates due to the existence of a sophisticated IT infrastructure, propelling demand through 2026–2035.

Key players in the market include Netflix, Ampere, Oracle Corporation, Quanta Computer inc., SMART Global Holdings, Inc., ASUSTeK Computer Inc., Cisco Systems, Inc., Huawei Technologies Co., Ltd., Intel Corporation.
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